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How to get the cash flow you need to succeed as an SME

If you’ve recently started, or are managing, an SME you know how it’s a labour of love developing and growing it into the thriving business you know it can be. Being able to accept and meet incoming purchase orders from clients quickly and efficiently is the key to unlocking unlimited growth.

But, unfortunately, meeting these purchase orders and successfully delivering on them is not so easy in reality, especially as a recently established business. A variety of challenges make it tough for SMEs to succeed in securing growth and success, the most common being cash flow restrictions within the business.

As an SME, how do you scale your operations to meet more purchase orders, expand your client base and grow your revenue? There’s a simple solution - and it’s not a bank or credit loan! Read on to find out how you can overcome these SME growth challenges quickly and without taking on debt.

The Challenges of Limited Cash Flow

Any SME owner can relate to the frustration of not having the cash flow you need to inject into your business. You might accept incoming purchase orders from clients but limited working capital makes it difficult, if not impossible to meet them.

As a result of this, you’re not able to deliver on these purchase orders or have to delay their delivery while you try to come up with a solution. Orders are left unfulfilled and clients are unhappy with the service you provide. You begin losing business because you have to turn away incoming PO requests, limiting your revenue and growth potential.

Turning to the tried-and-tested methods of obtaining funds doesn’t help either. Your applications for a loan from the bank or access to credit are unsuccessful because your business is too new and hasn’t built up enough of a credit score yet.

Limited cash flow also produces a variety of secondary problems throughout your operations. Not being able to fulfil your purchase orders means you don’t have a steady stream of incoming profit that you can reinvest into your operations, making it harder to cover additional expenses like staff and employee salaries and office materials.

What’s the Solution?

Access to the funding you need is the underlying problem preventing your SME from growing and scaling into what it could be.

You don’t need credit or bank loans - what you need is purchase order funding. Purchase order (PO) funding is funding that specifically covers the cost of obtaining stock to fulfil a purchase order. It’s essentially funding that comes from an accredited third-party provider (known as the PO funder) who supplies the cash flow to procure purchase order stock from the supplier.

PO funding is different from a traditional loan or line of credit. The money being advanced by the PO funder is working capital so it's not transferred to your personal or business bank account. It’s directly paid to the supplier from the PO funder to cover the cost of stock procurement.

Through PO funding, you get the cash flow you need to meet your incoming purchase orders, scale your operations to accept larger PO requests and refunnel incoming revenue back into the business to help it grow.

But, remember that when it comes to receiving the funds you need, finding the right PO funder is equally important to your SME’s success.

Meet Sourcefin - Your Trusted Growth Partner

As an SME, PO funding might not be the only obstacle you’re struggling to overcome. Maybe you’re having trouble sourcing trusted suppliers who provide high-quality stock and are reliable? Maybe you’re struggling to arrange logistics and shipping for your POs so the stock can reach your clients? Perhaps you’re not sure where you can improve your management processes to better meet incoming orders?

Sourcefin can provide you with the funding your business needs. Being an accredited third-party supplier of business funding, Sourcefin can help you overcome your cash flow challenges, while partnering with you to help your business grow across key areas.

As an organisation, Sourcefin doesn’t just offer the purchase order funding you need - it can support your business throughout the entire process, from stock procurement to supplier vetting and client logistics and delivery, with services that include:

  • Purchase order financing

  • Supplier networking

  • Supplier vetting and assessment

  • Supply procurement

  • Logistics handling

  • Business process and management advising

It’s not just about getting the funds you need - it’s about finding the right PO funder who can partner with you, ensuring your success every step of the way. Sourcefin has the financial backing and technical expertise to maximise your SME’s growth and revenue potential.

Ready to find out what Sourcefin can do for you? Get in contact to learn more about how Sourcefin can help you succeed or apply now for the PO funding you need.

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